Low-Price Strategy

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Low-Price Strategy

In marketing, a strategy in which a newcomer to a market establishes a low price for products, especially when there is already significant competition. This can be advantageous when the seller must rely on high volume for profit; that is, even though profit margins would be low, the net income would still be high because of the large number of sales. A low-price strategy also helps create market share.
References in periodicals archive ?
Local competitors have been following your low price strategy.
com focusing on delivering the company's everyday low price strategy.
com focusing on delivering the companys Everyday Low Price strategy, while Jet will continue to provide a unique and differentiated customer experience with curated assortment.
Pepkor continues to target low-income and middle-income consumers with its low price strategy.
D1], the optimal price for the traditional channel under low price strategy in the first period is as follows: (i) when c < 1 - [[theta].
Specifically, on the one hand, passive wearable electronics represented by Mi band led with its low price strategy.
i] [less than or equal to] 1), so the proportion of choosing low price strategy [p.
On the other hand, although it tried to improve its gross profit margin by raising proportion of its own developed products to the total sales, the profit margin lowered owing to the low price strategy.
The other possible angle of a low price strategy is the leverage that iPhone commands when it comes to bargaining exclusive deals with carriers.
Management was concerned whether the low price strategy could sustain growth.
Bradley criticised Asda's decision to issue the vouchers and cards, after chief executive Andy Bond reaffirmed Asda's commitment to an everyday low price strategy last year, by claiming retailers could "not buy loyalty with plastic points".
However, with a low price strategy, parity perceptions should be fostered in an attempt to discourage brand loyalty.